Asia 25 Highlights Manufacturing Might (Ⅳ of Ⅵ)

Asia is the heart of manufacturing, which plays a significant role in the security industry. We featured 25 top performers representing this important region.

Asians dominate manufacturing, forming an imposing presence in this year's ranking. Through the SWOT analysis, their perspective on the industry shapes their plans and affects market direction.

Growth FactorsSeveral Asian manufacturers with branded products saw strong growth for 2007. While most are in surveillance, access control and intrusion providers saw an uptick as well.

Chinese surveillance provider Hikvision's revenue increased 68 percent in 2007, with technology and competitive prices. "The strength and advantage of our company is control of technologies, as well as competitive prices from lower costs," said Tony Yang, International Marketing Director for Hikvision.

Continued innovation drove growth for other Asian surveillance providers. "The ability to launch new products and new software versions (with new video analytics) each year has been one of the key factors to drive our growth," said George Tai, CEO of GeoVision. "Expansion of overseas markets, along with distribution and system integrator channels also improved growth."

Providers grew with expanded networking. "Commax's key factors for growth during the past years were its broad global network which makes distribution channels highly effective and increases global marketing power," said Paolo Byun, Vice President of Commax.

Technology and management boosted Everspring's home security sales. "Key factors for Everspring's growth in year 2008 included the injection of advanced wireless technologies, powerful leadership and a well-organized service team," said Charlotte Ho, Marketing Manager of Everspring.

Some Asian providers grew domestically. "The building industry in China is a factor, as 95 percent of our revenue comes from China and the Safe City projects," said Terence Yap, CFO for China Security & Surveillance Technology (CSST). The company is listed on the New York Stock Exchange and the Dubai Stock Exchange.

Increasing local visibility contributed to China's Dali Technology, a surveillance provider. "Dali Technology started trading on the Shenzhen Stock Exchange on February 18 this year," said Huimin Pang, Board Chairman of Dali Technology. "The Chinese economy continues to develop, with infrastructure holding a great deal of potential for rapid market growth."

Loss FactorsSome companies reported sufficient revenue to make it into the ranking, but suffered losses for 2007. Competition from China makers and cutthroat prices caused Yoko Technology to lose revenue, said Paul Wang, Chairman and CEO.

DifferentiatorsAsia's manufacturers focus on innovative products that stand out from the rest. High-end offerings, such as network cameras and converged solutions, exemplify the region's technological prowess.

To produce quality cameras, VIVOTEK make s some of its own components. "Our strengths include a full range of IP surveillance products, including hardware equipment and software platforms, as well as SoC R&D capability," said Owen Chen, Chairman of VIVOTEK.

Providing suitable solutions, such as H.264 compression and network surveillance, is how Hikvision distinguishes itself. "We can make sure we provide products required by the market, as well as taking a leading position of the market," Yang said.

Korean network surveillance provider Hitron Systems emphasized innovation in its offerings. "Hitron has given its customers the benefit of one-stop shopping, with a full lineup of different products," said J. H. Choo, Director of Overseas Sales for Hitron Systems. "Hitron has invested more than 4 percent value of its total sales in R&D activities in one year and R&D manpower accounts for more than 25 percent of all employees."

Academic roots have helped Dali master its IR surveillance technology. "Dali Technology was spun off from a Zhejiang research center, with a skilled R&D team and high-level research center," Pang said. While innovative products are important, having buyers who will take them sets Yoko apart. Wang said, "Yoko's strengths are strong R&D, an existing sales channel and well-controlled cost."

Providing product services gives Commax an edge. "Commax differentiates itself from its competitors by developing, manufacturing, selling its own products, having successful management and excellent after sales service and providing total solutions for home network," Byun said.